OpenAI Signs $10 Billion Deal with Cerebras, Challenging Nvidia

Securing Computing Power to Enhance ChatGPT Performance

OpenAI, the developer behind ChatGPT, has signed a computing power purchase agreement with Cerebras, a semiconductor chip development startup.

According to the Wall Street Journal (WSJ) on January 14 (local time), OpenAI has agreed to purchase up to 750 megawatts (MW) of computing power from Cerebras over three years. The contract is reportedly valued at 10 billion dollars (approximately 12 trillion won).

Cerebras is a startup that possesses the "Wafer-Scale Engine" (WSE) technology, which creates an entire wafer as a single, massive chip. Typically, chip manufacturers cut wafers into smaller chips, which then requires connecting computing chips and memory chips to perform operations.

By manufacturing an ultra-large, single chip like Cerebras does, it is possible to save power consumed by data transfer between chips and eliminate bottlenecks, thereby increasing data processing speeds. Cerebras claims that its chip's response speed is up to 15 times faster than conventional graphics processing units (GPUs) such as those from Nvidia.

Cerebras explained that this partnership between the two companies has been in preparation for about 10 years. The two companies have already been collaborating since 2017, sharing research results and early-stage work. In particular, OpenAI CEO Sam Altman has personally invested in Cerebras.

OpenAI is currently making every effort to secure data center capacity in order to support its growth. ChatGPT now has over 900 million weekly users. As the number of users has surged, concerns have arisen about a potential shortage of computing power. To address this, OpenAI has collaborated with Cerebras in search of a more cost-effective and efficient alternative to chips designed by Nvidia.

Meanwhile, there is speculation that OpenAI will pursue an initial public offering (IPO) this year. Last year, the company signed an investment agreement worth 40 billion dollars (about 57 trillion won) with SoftBank. If OpenAI goes public, some expect its valuation could reach as high as 1 trillion dollars (about 1,400 trillion won).